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Hi Jerry,
Most of my trades are based on overbought/oversold so I use
stochastics, along with trend indicators on a longer timeframe. I want
to enter the trade in the direction of the longer trend. For this I
consider trendlines, dmi, and macd histogram. I sometimes plot
different indicators and m/a's on different charts in order for the
chart to make sense to me. I plot Bollinger Bands on the daily chart
when I evaluate a trade candidate; for example I like that if a short
candidate takes out the prior days low it would mean the candles are
moving away from the upper band, in the hope it will have some steam to
get towards the lower band. . I don't expect to get all criteria
satified on each stock, but I do require that the stock starts to move
my way before I trade it. Stochastic or MACD divergences are a plus. I
do not enter a trade on a stochastic pop but I might stay in a trade if
one is anticipated. I prefer to trade the same stocks multiple times
because I get to know them.
If I expect significant upside or downside action, for example a
breakout from a pennant pattern, I make the stock a candidate to trade
long or short depending on which way it moves the next day and I follow
the stock. I would consider it a minus if a trade is in the direction
of a recent big gap, because gaps tend to get filled. .I don't like to
go against the market, and I don't have a good feeling for the market
tomorrow. I've been cutting down on my trading lately becuase of some
health problems, so I'll probably try to get some sleep tomorrow and not
trade.
How's Atlanta these days? Do you live in the city? I'm in Cherry Hill,
NJ near Philly. I have family n/w of Atlanta.
Best wishes,
James
GREHERT wrote:
> So tell us James, what criteria do you use for picking your shorts?
>
> Jerry Rehert - Atlanta
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